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India’s imports of Russian crude oil have reached their highest level in ten months, driven by increased purchases of the ESPO blend from Russia’s Far East.
According to ship tracking data from Kpler, volumes are expected to approach 1.8 million barrels per day (bpd) in May, underscoring India’s ongoing role as a major outlet for Russian oil amid tightening Western sanctions.
Refiners in India, the world’s third-largest oil importer, have stepped up purchases of lighter Russian grades such as ESPO, with traders reporting more than ten cargoes of June-loading ESPO crude ordered last week. Demand for these grades is expected to continue through July, supported by favourable processing margins and current market availability.
The uptick in purchases occurred ahead of fresh sanctions imposed by the European Union and United Kingdom targeting Russia’s so-called “shadow fleet” — a network of tankers and intermediary firms facilitating oil exports outside G7 regulatory frameworks. Despite these restrictions, Indian refiners have continued to source Russian oil, exploiting discounted pricing and alternative logistical arrangements to maintain stable supply.
Analysts note that Indian buyers have capitalised on both long-term contracts and spot market opportunities. Jay Shah, a senior oil analyst at Rystad Energy, said recent crude distillation unit shutdowns at key Indian facilities — including Reliance Industries and Mangalore Refinery and Petrochemicals Ltd (MRPL) — have created a short-term increase in demand for feedstock at fluid catalytic crackers. Shah added that deliveries to Reliance’s Sikka port have increased since the beginning of the year, with some cargoes arriving under existing supply agreements with Russia’s Rosneft.
A source at one Indian refiner confirmed that ESPO is currently available in ample volumes, with traders quoting premiums of around $0.50 to $1.00 per barrel over Dubai benchmarks. This marks a modest but notable increase in pricing, attributed to limited supply access for Chinese refiners due to tight crude import quotas and reluctance among Chinese state-owned firms to engage in transactions involving sanctioned barrels.
These shifts have also had an impact on regional price dynamics. While India has absorbed a growing share of Far Eastern Russian crude, traders report that the redirection of ESPO cargoes away from China has driven up spot premiums in the Chinese market. Offers for July-loading ESPO cargoes to Chinese ports are reportedly around $2 per barrel above Dubai benchmarks — up from $1.50–$1.70 for June deliveries.
The renewed Indian demand for Russian oil follows a sharp decline in February, when imports fell to a 14-month low amid uncertainties caused by U.S. sanctions enforcement. In response, Indian refiners adjusted procurement strategies by using non-sanctioned tankers and relying on intermediary traders. As a result, Russian oil deliveries to India recovered through March and April, culminating in the current ten-month high.
While the majority of imports consist of Urals crude, the shift toward ESPO reflects both technical and commercial considerations. ESPO’s lighter composition is suited to India’s refining infrastructure and yields higher-value products such as petrol and naphtha. Moreover, its shorter shipping route from Kozmino port provides logistical advantages over Urals shipments from western Russian ports.
Despite geopolitical headwinds, India has continued to emphasise its position as a buyer focused on securing affordable energy supplies. New Delhi maintains that its procurement policies adhere to international legal norms and reflect domestic economic priorities.
As sanctions enforcement evolves, including restrictions on shipping and insurance services, India’s role in the Russian oil trade is likely to remain under scrutiny. However, the May figures indicate that Moscow continues to find reliable demand in the Indian market, even as its access to Western markets remains curtailed.
Further data from Kpler and Indian customs authorities are expected to clarify total monthly volumes and grade-specific breakdowns in the coming weeks. For now, India’s energy strategy appears set to maintain Russian crude as a central component, with ESPO at the forefront of that relationship.
Read also:
US Sanctions Force India to Rethink Russian Oil Imports
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